Old Pension Scheme: For quite some time now, there has been a demand across the country to re-implement the Old Pension Scheme (OPS). There is a national level movement going on in the entire country regarding this.
Whenever the election season comes closer, its demand becomes more intense. In such a situation, in view of the upcoming Lok Sabha Elections (2024), a debate has started regarding the demand for implementing the old pension scheme afresh.
On one hand, the government does not seem to be in favor of implementing the old pension, while on the other hand, in the election environment, the opposition parties have been continuously doing politics on the restoration of the old pension system. In the upcoming elections too, some party may try to woo voters by raising the issue of its restoration.
In such a situation, in view of the Lok Sabha elections, can the Modi government at the Center once again bring back the old pension keeping in mind the demands of the employees? This question is arising because salaried and pensioners are a big voter category.
In view of the elections, the government keeps trying to woo them. In many states, employees are demanding restoration of the old pension scheme. After all, why are the employees leaving the New Pension Scheme and demanding the old pension again? Will the government try to find a solution to their demand?
If the old pension scheme is implemented once again across the country, what benefits will the government employees get? We are going to give you answers to all these questions.
What is Old Pension Scheme (OPS)?
Under the old pension scheme i.e. Old Pension Scheme (OPS), before the year 2004, the government used to give a fixed pension to the employees after retirement. This pension was based on the employee’s salary at the time of retirement. Under this scheme, after the death of a retired employee, his family members were also given pension.
However, the Old Pension Scheme was discontinued on 1 April 2004. It has been replaced by National Pension Scheme. After which the demand for its withdrawal is becoming very strong. At the same time, there is a continuous demand to implement the old pension scheme.
Benefits of Old Pension Scheme
- Under this scheme, half the amount of their salary is given to the employees as pension at the time of retirement.
- In the old pension scheme, if an employee dies after retirement, the pension amount is given to his family.
- In this scheme, there is no deduction of any kind from the salary of the employees for giving pension.
- In OPS, at the time of retirement, 50 percent or half of the last basic salary of the employees is given as pension.
- Through this scheme, the facility of medical allowance and reimbursement of medical bills after retirement is also provided.
- Under this scheme, a retired employee is given a gratuity amount of up to Rs 20 lakh.
Government again clarified its stand on OPS restoration
However, the government has once again made its stand clear regarding the re-implementation of this scheme. In response to a question raised in the Lok Sabha on the issue of restoration of the Old Pension Scheme, Minister of State for Finance Pankaj Chaudhary said that the government does not have any such proposal.
RBI also warned about OPS
At the same time, the Reserve Bank of India (RBI) has also warned about the Old Pension Scheme (OPS). RBI has said that implementing this will put a lot of pressure on the finances of the states and their capacity for development related expenses will be limited. The RBI report said that thus returning to the old pension of the states would be a big step backwards.
